Dasin Retail Trust Receives Letter of Demand for Outstanding Offshore Facility Obligations
Dasin Retail Trust Receives Letter of Demand for Outstanding Offshore Facility Obligations
Key Highlights
- Dasin Retail Trust Management Pte. Ltd. (DRTM), as trustee-manager of Dasin Retail Trust (DRT), has received a significant Letter of Demand from Malayan Banking Berhad, Singapore Branch.
- The demand relates to a substantial offshore facility agreement totalling S\$430 million, with outstanding obligations that remain unpaid.
- The Letter of Demand was received on 7 January 2026.
- The outstanding principal and accrued interest is considerable, with the agent demanding immediate payment.
Details of the Letter of Demand
According to the announcement by DRTM’s Board of Directors, the Letter of Demand was sent by Malayan Banking Berhad, Singapore Branch, in its role as both Offshore Facility Agent and Offshore Security Agent. The outstanding obligations stem from:
- The S\$430 million Offshore Facility Agreement dated 3 January 2017, which has been amended, modified, and supplemented over time.
- The borrower debenture and share charge both dated 17 January 2017, which were executed in connection with the facility.
The Letter of Demand refers to a previous notice dated 10 August 2023, highlighting that the Secured Obligations remain unpaid and interest (including default interest) continues to accrue.
Financial Exposure
Immediate Actions Demanded
- The Offshore Facility Agent has demanded immediate payment of the above sums.
- DRTM has been given three Business Days to make full payment, failing which the agent indicated it will “proceed to take such action against DRTM as it deems necessary to best protect its interests without further notice.”
Potential Impact on Shareholders and Share Price
- This is a material and price-sensitive development. The demand for immediate repayment of such a large sum places DRT under significant financial pressure and creates uncertainty about its ability to meet its obligations.
- If DRTM is unable to resolve the outstanding payments, it could face enforcement actions from Malayan Banking Berhad, which may include the seizure or sale of secured assets. This poses a substantial risk to the trust’s financial stability and future operations.
- This development may have a direct negative impact on DRT’s share price due to the heightened credit risk, possible default, and overall uncertainty for investors.
- The company has committed to making further announcements via SGXNet should there be any material developments.
What Investors Should Watch
- Investors are advised to closely monitor further disclosures from DRTM, as any escalation or failure to settle the outstanding obligations could trigger significant corporate actions, including possible restructuring, asset sales, or enforcement proceedings.
- The situation is dynamic and could influence both the short-term and long-term value of Dasin Retail Trust’s securities.
Conclusion
The receipt of this Letter of Demand signals a critical juncture for Dasin Retail Trust. Shareholders should pay close attention to any follow-up announcements and assess their investment positions in light of the elevated risks arising from this development.
Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence and consult with professional advisors before making investment decisions. The author and publisher are not responsible for any losses incurred as a result of reliance on the information provided above.
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